No. of Recommendations: 0
Hi SirTas
In my case, DW and I will receive about 30k in Social Security. This does not seem "adequate" to me.

My budget spreadsheet shows that I've spent about $22,000 in any given year since 2003, to maintain my mortgage, insurance, taxes, food, vehicle, basic household maintenace, and medical expenses.

I consider this a reasonable estimate of my NEEDS. I suspect I could cut this by about $8,000. It would be tight, but I did it in 2001-2002.

As for what I WANT - like you, I WANT more. But do I HAVE to have it order to 'retire'? No.

In 1997, I put together a 'plan' that included a detailed description of what I considered 'basic needs' and the $$ required to support that lifestyle. I estimated, on top of that, the things I considered 'wants', and the $$ needed to meet those goals.

I estimated that $36,000 would meet my basic needs as well as my minimum 'luxury goals'. To meet ALL my luxury goals would require about $50,000/yr.

CAVEAT - The cost of medical care insurance has increased since then... so my estimate may be a bit outdated. Although, ironically, my job provided 'medical insurance' stipend is today within a few dollars of that in 1997. ($297/mo vs $320/mo)

The retirement calculators NEVER give me the same info that my self-created spreadsheet gives me. I control the 'assumptions' in my spread sheet, therefore I trust my spreadsheet more than the calculators.


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.